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ASR Wok Shop

Required support from the ASR , to reach eth distribution wanted position
by

Sherif Nafie

on 29 May 2010

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Transcript of ASR Wok Shop

ASR Work Shop Fron Line Archers Distribution Focus areas 1.Distribution planning Shipping planning
Distribution route identification
Distribution Solutions (Space needed, Local distribution Setup& cost of logistics services)
EDC & ESD Preparation for deliveries 2.Surface transport share
3.MU cost avoidance and green supply compliance
4.Trade compliance 4.Trade compliance 2.Surface transport share
1.Distribution planning 3.MU cost avoidance and green supply compliance
Within this area the focus areas are:

The route of materials that is going to follow form the place of manufacturing to the destination point , if this route will include high volumes the cost of freight could be reduced

Identify the space needed for each product and present the distribution solutions for the project

EDC and ESD preparation for the Deliveries Based on the forecasting for the coming materials

Freight and insurance calculation in the TPCM , can be easily be provided by using the Estimation tool which will eliminate the lump sum freight and insurance Calculation

Preparing the shipping plan for coming orders

Etisalat Success Story (Using Shipment planning) In old phases with in Etisalat the percentage of the Air transport was 100% , in Phase 3&4 Shipping And other Supply cost reached 225% more than the Budget

In the change project that has been prepared By El Shafei Yousef , the goal was to reduce the gap between the Budget and the Actual to reach zero in 2 years

After using shipping planning and calculating the right figures for freight with out neglecting the factor of on time deliveries was better than expected and the reduction was made below the Budget that was identified for the Etisalat New phases(5&6)

The Figures shows the Percentage of sea compared to Air in phase 3&4 and 5&6 ( Percentage of Surface transport 93%in phase 5&6)
With out neglecting the Factor of on time deliveries , the shipment planning presented an over view for the deliveries and how it can be mapped to the contractual obligation towards the customer for HW/SW

An advantage of using shipment planning is that it reduces the WH space when arranging the materials flow based on Project needs ( JIT (Just in time) Concept)

The figures illustrates the difference between the Delivery timing before and after improvement
Libya Shipment planning ( Success story) With in the last visit to Libya , there were a lot of discussions regarding reducing air transport and going for Surface
Shipment planning was introduced for all accounts , the feedback was great regarding the usage of sea transport and the huge savings that could be resulted from achieved shipments based on needs
The planned cost for AL Madar Project was 28 MSEK and by using the Shipment planning reduced to be 4 to 5 MSEK
Worth mentioning that the by doing shipment planning the WH cost will be reduced by 10 K USD/Month

Agree with Projects and KAM to make sure that the cost of warehousing and distribution are taken into consideration in the calculation of cost
Introduce Scrapping & Ecology management to each account and insure that the way forward of old materials that will not be left over's in the WH
Make use of Access materials from old projects to offer to the customer in new Phase/PO which will save transportation cost for new materials and align with the Green Supply initiatives
Introduce and run Green Supply initiatives in All accounts
Due to cost avoidance reasons the Surface transport has been a focus area and the requirements have been increasing , in 2010 the total cost target is to reach 70% Surface transport. Surface is now default for the MU and shall be reported in to Kista in SEK
To reach wanted position the following is needed:
1. Early involvement in the offer preparation
To work on the shipping plan from early stage
2.To avoid unrealistic commitments for delivery lead times, have the KAM to include the Shipping and 3.Distribution plan in the offer to the Customer.
4.To set the Mind set of Shipping in batches according to the Needs in the roll-out plan,cost and reduce WH space
5.Have a view on the materials that is needed first in order to prepare the shipping plan and map it with the rollout plan.

Ditribution budget Accuracy
http://anon.ericsson.se/eridoc/component/eriurl?docno=&objectId=09004cff83373632&action=current&format=excel8book what is needed to make a shipping plan Highlevel BOQ
Contractual lead times
first batch materials
Rollout plan
lead time for materials
lead time for transporting materials
SDP1 Activities at SDP1 that should be in place according to following: Provide distribution Services according to the current reality of each project i.e. provide added value services example battery charging etc.
Prepare the Supply chain based on the forecasting of the volume to perform bench marks and RFQs for Distribution or warehousing
Distribution route Identification ( Market capacity survey) SDP2 Ecology management promotion, should be linked to the End user statement signed by the customer to insure compliance Forecasting EDC ( Dubai Hub) Preparation for deliveries
ESD ( Ericsson Shipping Depots) preparation
Agree with Projects and KAM to make sure that the cost of warehousing and distribution are taken into consideration in the calculation of cost
Introduce Scrapping & Ecology management to each account and insure that the way forward of old materials that will not be left over's in the WH
Make use of Access materials from old projects to offer to the customer in new Phase/PO which will save transportation cost for new materials and align with the Green Supply initiatives
Introduce and run Green Supply initiatives in All accounts
LC creation involvement
SDP3 Activities at SDP3 that should be in place according to following:
Confirm all distribution Setup agreed before ( Route of the materials, warehousing, local distribution)
Prepare the EDC & ESD for deliveries

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